80MW Scale with Total Project Cost of 1 Trillion Won
Submarine Optical Cables and Stable Power Supply
The participation of POSCO E&C in the development of a large-scale artificial intelligence (AI) data center in Yeongdo-gu, Busan is becoming more tangible.
Kim Yonghwi, CEO of Changhai Development (right), and Park Jongjun, Head of the Architecture Business Division at POSCO E&C, are posing for a commemorative photo after signing a memorandum of understanding (MOU) related to the construction of the AI Data Center in Yeongdo, Busan, on the 14th. Photo by Changhai Development
On May 14, POSCO E&C signed a strategic memorandum of understanding (MOU) for mutual cooperation with Changhai Development, which is promoting the construction of an 80-megawatt (MW) data center, at POSCO E&C's headquarters in Songdo. Through this MOU, POSCO E&C secured the preferential right to construct the Busan Yeongdo AI Data Center.
Changhai Development is a developer that owns a shipyard site in Namhang, Yeongdo, Busan, and is working to transform the Masstech Heavy Industries shipyard site into an AI data center city that will lead the digital era.
Yeongdo in Busan is a location through which more than 90% of the submarine optical cables connecting Korea to overseas pass, offering the advantage of enabling fast data transmission between domestic and international locations. In addition, stable power supply is available from nearby sources such as the Kori Nuclear Power Plant, and as a substation is already in place, additional infrastructure construction costs for the data center can be reduced.
A total project cost of 1 trillion won is expected to be invested in the AI data center. CCGI, a Singapore-based investment company serving as financial advisor, plans to provide 300 billion won of the total project cost as equity investment, while the remaining 700 billion won will be raised through project financing (PF) loans.
CCGI plans to directly invest about 150 billion won in equity using its own blind fund. The project financing will be led by a major domestic securities company, with completion targeted for the end of 2028.
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